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China’s Value-Added Services Market Set To Surge, New Media Services Drive “Dynamic” Growth

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Messaging and alerts services continue to be the money-makers, but mobile music, games and Mobile TV are also making considerable gains in China’s wireless value-added services (WVAS) market, according to new research from Ovum. It estimates data had contributed 21 percent to total mobile service revenues by June 2006. Based on the top-notch spot data services have in the mix, Ovum forecasts that WVAS will generate over US$11.5 billion revenues in China by 2010, a whopping 48 percent increase over 2006.

Messaging will continue to dominate the WVAS sector, contributing to over 63 percent of total VAS revenues in 2010. But new media services (including mobile music, games and mobile TV) are also set to make their market, driven by factors including strong economic growth, rising customer awareness and demand, and the launch of 3G. Other than these, new applications such as location-based services, mobile blogging and mobile payment will have an appealing growth potential considering the huge landmass and the high mobility of the Chinese population in the country. Overall; SMS, ringback tones and WAP are currently the fastest-growing services and will continue to be the predominant services in the next few years, Ovum said. (Press release.)

Jan 11, 2007 3:35 PM ET

Posted In: Research & Metrics, Countries, Asia, China

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